Reply To: VAT if drop shipping to Netherlands?


If you are dropshipping from Canada into the Netherlands, then the place of supply is considered to be where the goods are shipped from, rather than where they arrive. In this case, as the place of supply is outside of the EU, this means VAT is not due on the sale of the goods.

However, just because there is no VAT due on the sale, it does not mean that VAT should be ignored altogether. There may be import VAT due when you ship goods into the Netherlands/UK. Import duties and VAT is payable by the importer on record.

If you are dropshipping and your customer is the importer on record then technically the customer is responsible for the import VAT. If your business is the importer on record then your business will be liable to pay the import duties and VAT.

Hope this helps.